Case Analysis of Cirque Du Soleil

Cirque du SoleilBackground: Cirque du Soleil was the first ever circus group that evolved its self to the commercial world by introducing the simple but innovative and unique concept of combining the traditional circus acts with opera, dance, theatre and live music. Cirque du Soleil ensured success by executing the concept to the point of perfection. Excellent choreography and amazing pyrotechnics were the backbone of their success. The experience of a Cirque du Soleil show is considered to be as one of the most awaited and valued entertainment experience by people all around the world. Goal: The goal of Cirque du Soleil is to maintain their position as the market leader through constant innovation and also to expand their market by winning millions of hearts through sheer magic of their performance. Their goal suggest that they are in a constant strive to combine commercial success with artistic magnificence. Our Key Concern: To identify Cirque du Soleil’s true competitive advantages and to utilize those advantages in order to create strategies that would help them to reach their goal.

Competitive Advantages:
Brand Image:Substitution of the traditional circus by a complete new flavor helped Cirque du Soleil to incorporate into public’s mind. They were the first who eliminated the use of animals in the circus. In addition, they innovated different styles of art that no one used before. These differentiation and innovation of their style captivated vast number of audiences. Thus, the recognition among public allowed them a competitive advantage. Their proficiency on the field prevents competitors to imitate their styles and the brand.

Rare Technical skills: Cirque du Soleil had all potential people including the management with full of creativity and experiences. Guy Laliberete had creative ideas to take the organization to a new height. He came up with the idea of Bttersea Project and Montreal Mega Complex which were important to fight back the growing competition. The organization had plenty of competent employees who trained the performers to enhance their performing skills and abilities in a more constructive way. These skills of Cirque du Soleil help to keep the shows vibrant and enchanting. Guy Laliberete was described as creative “dreamer” and Daniel Gauthier as “numbers man” who helps the company earn profits.

Unique Organizational Culture: The company emphasizes on the employees’ needs. The company ensures the safety of the performers. Besides, the accommodation and training facilities are provided to the performers in a four-star quality. Thus, it helps to retain employees and also improve their performing skills. The trainers travel with the troupe to train the new ones. Employees are encouraged to innovate new styles following a decentralized work system. Moreover, the employees are given the freedom to make decisions based on artistic and creative criteria instead of industry standards.

Government Affiliation: Cirque Du Soleil planned to open a mega-complex in Montreal, the city that attracted tourists from the neighboring country United States. Due to its brand image and expertise for managing the diverse culture of people, the Montreal Chamber of Commerce and provincial government were interested to provide financial support to set the infrastructures of the enlargement plan.

...STRATEGIC MANAGEMENT
CIRCUS CASE B Jorge Tarzijan
Questions: CirqueduSoleil
1. Is the business model of CirqueDuSoleil different from the business model of traditional circus? Why? 2. What are the main differences between the choices selected by CirqueDuSoleil and the traditional circus? 3. When you compare CirqueduSoleil with the conventional circus, which are the elements kept by Le Cirque? Which ones were downplayed and which ones were played up? 4. How does CirqueduSoleil create superior proﬁts? 5. What are the main learning points of this group of cases?
BACKGROUND INFORMATION. ANNUAL REVENUES: Feld Entertainment vs. CirqueduSoleil
700
Annual Revenue (US$ Millions)
600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001
In 2009, CirqueDuSoleil revenues were U$ 810 million (approx). Feld Entertainment has bought other companies, thus comparisons are not very meaningful anymore.
Is the business model of CirqueDuSoleil different from the business model of traditional circus? Why? ELEMENTS OF THE BUSINESS MODEL (DIFFERENT CHOICES?)
Traditional Circus...

...CirqueduSoleilCaseAnalysis
1. What is Cirque’s product and its strategy?
CirqueduSoleil, a Quebec based company, is a circus that does not has a product. What it does offer is artistic works with a high-quality, artistic entertainment. It gives the spectators the experience of a theater and a dance circus without animals, which bases its performances on very talented and creative people, combining street performances, clowns, acrobats, and gymnasts. Cirquedu Soleil’s strategy is to evoke the imagination, invoke the senses and provoke the emotions of people. It does this by putting together solid and powerful performances, in combination with creative scenarios, precise illumination and magnificent costumes.
In addition, Cirquedu Soleil’s diversification included going into other aspects of entertainment. Thus, in 1999, it released its first feature film and its first television special. Also, in 2000, it created an IMAX large-format film. Moreover, CirqueduSoleil keeps diversifying its commercial activities in publishing and merchandising. In 1998, Cirque opened its first store on the property of Walt Disney world Resort in Florida. What’s more, CirqueduSoleil hasn’t received any grants...

...Current situation of CirqueduSoleil
We will analyse the current situation of CirqueduSoleil by looking at the ‘four Ps’: product, price, promotion and place.
Product: the main product CirqueduSoleil offers is a circus show. Their shows are filled with dancing, acrobatics, costumes, singing and acting. They come up with a new show once every few years and they will tour with that particular show. Therefore, they offer a large variety of shows and they make their product unique every single time. Besides that, the quality of their show is one of high standards. They have over fifty performers, a large variety of acrobatics and dance. Their décor and costumes are designed and produced in their state-of-the-art headquarters, which includes training facilities and creative studios. All of this means Cirque offers a high quality and mainly classy product. For example: they will only perform at typical A-locations in a city.
Once you enter the world of CirqueduSoleil, you will be enjoying hours of spectacle and amazement. They offer a great night out where the visitors will experience a totally different circus act than what they are used to. Their product, their show, is original and it is special. Every show has its own goodies, such as a CD and a program book, which can be bought by...

...Runing Head: SWOT ANALYSIS OF CIRQUEDUSOLEILCirqueduSoleil:
The Circus of the Sun Shines
Bethany Caswell
DeVry University
Abstract
Since 1984 Guy Laliberté has been building CirqueduSoleil, an artistic circus that has amazed thousands of people in hundreds of towns. Cirque has worked hard on keeping their strengths unbeatable and weaknesses miniscule. In the process of making their weaknesses turn into strengths they have taken advantage of many opportunities available to them. Cirque has done so well at expanding their horizon is it difficult to find opportunities they have not taken advantage of; so, where will they go from here? They do have a few threats; yet even these do not seem to injury CirqueduSoleil. They may need to watch negative media attention and keep founder Laliberté under wraps. Although with Cirque’s popularity, little will affect this strong company that takes advantage of all opportunities and turns their weaknesses into strengths.
CirqueduSoleil: The Circus of the Sun Shines
1. Mission Statement: Invoke, provoke and evoke the imagination, the senses and the emotions of people around the world.
2. Organizational strengths/weaknesses
a) Strengths...

...CirqueduSoleil
Q1. How would you assess the attractiveness of the circus industry in early 1980s? What would you conclude from industry analysis?
The Circus has been an extremely popular form of entertainment during the 20th century. The circus creates an image of drifters and dreamers in the mind. In the 20th century the emphasis on spectacle continued on 3 ring formats.
The following factors played a major role in the attractiveness of the circus industry:-
* Animal acts provided an added form of entertainment along with the various circus acts. Electric lights and moving pictures also added to the magic of the circus.
* A series of ‘educational entertainments’ featuring people and historical montages from around the world.
* The expansion of railways made it easier for the group to tour the country. This also reduced the travel time considerably.
* Construction of arenas also facilitated to put on shows in a easier manner i.e. Larger seating population, shows during any season etc.
* The animals which were part of show were also made to march from the railway station to the performance site.
Industry Analysis:
Most touring companies were regional companies were privately owned and range in size from 15 to 80 performers. Most of the appreciative audiences were from small cities and towns.
Q2. What were the factors the traditional circus competed on? What would you like or...

...CASE STUDY: CIRQUEDUSOLEIL
1. What are Cirque’s product and strategy? The cirque product is a circ show without animals, the main features of this show are: clowns, acrobats and gymnasts. The difference between Cirquedusoleil and other circs is that the first one tries to make the show unforgettable by adding music specially composed for each show and also an elaborated “attrezzo” (lights and scenario). The Strategy that Cirque used is a blue ocean strategy, this strategy consist in creating a new industry from an existing one, so they reinvented the circus so we can say that they create a new industry. 2. How has Cirque structured and supported its casts to deliver superior performance? The Cirque tried to support each member of the cast when talking about habits and culture of each member. They tried to make it easier to each member to be in the road in every tour. Also, the management tries to give what artist asks, for example in the case there is a clown that explains that the clown section wanted a specific professor and the cirque hired him to teach the section of the clowns. With children they try to be as careful as possible, and they try to make a good environment to them. 3. What is the role of marketing? Since the Cirquedusoleil is...

...Cirquedu Soleil’s creative art form incorporates music and acrobatic performances to entertain people all over the world. Allowing employees the freedom and responsibility to be creative in their art and develop a brand that encourages customer loyalty is their business strategy.
Cirque’s biggest problem is employees are given too much control over artistic development and input regarding the direction of the business. Artists frown upon customers’ feedback, however Cirque wants customers to be loyal to a brand that does not welcome input. Cirque’s human resource practices are not aligned with their business strategy. A performance management system needs to be implemented that will allow employees the freedom to develop artistically and focus on customer’s needs. A 360-degree feedback appraisal should be implemented because in the entertainment business the customer’s opinion is crucial to the success of the company. The 360-degree feedback will allow employees to receive evaluations from customers, fellow coworkers who know the art form and perform a self-evaluation to compare and make behavioral changes to accomplish and meet business goals. Feedback promotes growth and development and when employees experience growth they are more likely to remain satisfied with their jobs, become more effective and are less likely to leave the company.
Cirque needs to implement a talent management system that will...